With the recent hype of crypto, we are in a new phase of not only the internet but most entertainment as we know it. Only the best online casino will likely use NFTs in some way or another to make the games more enjoyable. Here are some ways that NFTs will change the future of gambling, but first
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What is an NFT?
An NFT is a non-fungible token that ties ownership of an asset to the person. This means that the item is impossible to steal, as the person’s ownership is tied into a core part of the item, known as the blockchain.
This blockchain technology is similar to cryptocurrencies use, although NFTs isn’t a currency. They represent digital asset ownership, like an image, concert tickets, or music.
Will NFTs enter the gambling world?
NFTs have been around since 2015, but it has only been recently that their hype has genuinely taken off. With every influencer looking to sell you their latest NFT drop with hopes to provide value and make a sizable profit off the back of this new technology. But, how can ownership of “contracts” be used in the gambling world?
The Rewards system
In the past, when someone won the jackpot on a slot game, they would win cold, hard cash. Although now, things are changing, and NFTs might be the perfect thing to offer a gambler as a reward. The price of their jackpot is constantly fluctuating, so when a particular item is at its peak, it will be more likely to motivate the players to play for longer durations to increase their chances of winning this rare piece.
Another bonus is that the value of one’s prize could always increase. Say you were playing Evolution Gaming’s Mega way Slot game and won a CryptoPunk. Near the CryptoPunks release, you might have won around $74. Although this victory could have appeared dull at the time, now each NFT is worth between $350 000 and $500 000.
The Loyalty system
Now casinos can create an NFT and sell them off as royalty cards. The NFT will increase in value, making not only them but their early investors quite wealthy in the process. There is a limited amount of NFTs that the public can get their hands on. This means however many NFTs the casino decides to mint is it, no more than that. There can’t be any fakes or copies. This enables the casino to give immense rewards to owners who have the company’s NFT.
These rewards could start as small as free parking and escalate into being paid dividends from the company if the company reaches all the anticipated quotas. Will there be things we have already seen before with stocks and standard loyalty programs? At the end of the day, the number of rewards that the casino provides is entirely up to them. The more value they are willing to provide, the more demand for the NFT, as everyone wants the immense value it provides. Thus allowing the company to sell this for a more significant premium.
NFT’s provide Differentiation
The Casino and gambling industry, in general, is a competitive business. With so many people looking for a piece of the pie, differentiation becomes more and more challenging. NFTs could be the thing that sets casinos apart.
Some casinos can provide an alternative; playing at them has prizes that you can get anywhere else. You can only be the owner of their Jackpot Winning cryptocurrency if you genuinely did win the jackpot at that specific location. This takes the exclusivity up a thousand notches and depending on the casino’s reputation, the reward now changes from a value-based compensation to a status-based reward.
The Reward system
Casinos have always been where the house tries to feed the patrons’ ego by having different levels and reward systems. It was possible to earn yourself such a reward system by spending enough money. Now NFTs are combining the reward systems that a loyalty program provides with the satisfaction of winning the most significant slot machine, thus changing the dynamic completely! Suddenly someone winning the biggest jackpot in the place only encourages them to become a more involved patron.
Will NFTs become the new currency that casinos operate on? Maybe. But the execution should be done so that the patrons would value the NFT that the casino provides over large portions of cash.